The group is planning to roll out 8 new launches with a total GDV of RM2.19b
By IZZAT RATNA / Pic By MUHD AMIN NAHARUL
Property developer LBS Bina Group Bhd has projected a total sales of RM1.8 billion this year, a significant increase from the RM1.4 billion it recorded in 2017.
Group MD Tan Sri Lim Hock San (picture) said the expected improvement is also viewed as a sign that the company would increase its overall market share in 2018.
He said the group’s market capitalisation currently stands at approximately RM1.65 billion, and the more sturdy sales performance would contribute positively to the group’s earnings visibility in terms of revenue and profit in years ahead.
“This would boost the investors’ confidence and faith in the company, as LBS seems to have viable prospects to maximise our shareholders’ returns,” he told reporters at a media briefing in Kuala Lumpur yesterday.
He, however, said any turnover period for the group would depend on the overall performance of the company’s offerings in the market, as well as its operating environment in terms of supply and demand.
“Therefore, I am unable to predict any exact percentage point increase in respect of our market share. But it is safe to say that the future is looking up to us.” he said.
LBS share price in 2016 closed at RM1.77 with a market capitalisation of RM1.07 billion, against RM2.35 and a market capitalisation of RM1.609 billion as at end-2017, representing an annual jump of 40% in share price and over 50% increase in market capitalisation.
As such, the group is planning to roll out eight new launches with s total gross development value (GDV) of RM2.19 billion in 2018.
The project comprises 3,139 units of affordable homes priced below RM500,000. The segment now represents 60% of the group’s overall sales projection.
This year, 40% of LBS landed residential developments are expected to be within the Klang Valley, with a total GDV of RM884 million.
Lim said the strategy is based on the increasing demand for affordable homes that are easily accessible in the Klang Valley.
He said the management is also confident to achieve the sales projection, as LBS has an integrated and diverse business model that covers various property segments such as township development, mid-, low- and high-end landed, as well as non-landed projects.
“The stronger gross domestic product growth of above 5% year-on-year is also one of the driving factors to boost the property market that would positively impact the group’s overall prospects.”